Escorts Kubota Limited has secured a major victory in its tax dispute with Chennai authorities, as the State Tax Officer dropped a substantial tax demand of Rs 46.79 crores for Financial Year 2019-20. The company announced this development through a regulatory filing dated March 27, 2026, marking the complete resolution of a prolonged tax controversy.

Tax Demand Resolution Details

The State Tax Officer, Mandaveli Assessment Circle, Chennai, Tamil Nadu, passed an order on March 26, 2026, dropping the entire tax demand along with associated interest and penalty. This decision represents a complete vindication of the company's position in the dispute.

Background of the Dispute

The tax controversy originated from Show Cause Notices dated May 07, 2025, issued by the Chennai tax authorities. Escorts Kubota had been contesting these demands on two primary grounds that highlighted fundamental errors in the tax assessment process.

The company's objections centered on:

• Wrong classification: Tax authorities incorrectly classified agricultural tractors as road tractors
• Computation error: Alleged tax was calculated on total GST turnover instead of only tractor turnover

Regulatory Compliance and Timeline

Escorts Kubota has maintained transparent communication with stakeholders throughout this process, filing multiple updates under Regulation 30 of SEBI Listing Regulations. The company had previously submitted intimations on May 08, 2025, December 30, 2025, and January 30, 2026, keeping investors informed about the dispute's progress.

Impact and Significance

This resolution eliminates a significant contingent liability from the company's books and provides clarity on the tax treatment of agricultural tractors versus road tractors. The favorable outcome validates Escorts Kubota's technical and legal position regarding product classification and GST computation methodology.

The company has fulfilled all disclosure requirements pursuant to SEBI Master Circular and provided detailed annexures outlining the complete resolution of proceedings with the Chennai tax authorities. This development removes regulatory uncertainty and allows the company to focus on its core business operations without the overhang of this substantial tax demand.

Escorts Kubota Limited has announced a scheduled virtual investor meeting with Amansa Advisors LLP, demonstrating the company's commitment to maintaining transparent communication with institutional investors and fund houses.

Meeting Details and Schedule

The company has informed both BSE Limited and National Stock Exchange of India Limited about the upcoming investor engagement. The meeting details are structured as follows:

Regulatory Compliance Framework

The announcement comes in strict compliance with Regulation 30(6) read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This regulatory framework ensures that all stakeholders are informed about scheduled interactions between listed companies and institutional investors.

Escorts Kubota Limited has specifically noted that no unpublished price sensitive information is proposed to be shared during the meeting, maintaining adherence to insider trading regulations and ensuring fair disclosure practices.

Investor Resources and Transparency

In compliance with Regulation 46 of the SEBI Listing Regulations, the company has made its Investor & Earning Presentation available on its official website at https://www.escortskubota.com/investors/financials . This ensures that all investors have access to the same information presented during institutional meetings.

The formal communication was signed by Arvind Kumar, Company Secretary, and dated March 25, 2026, providing stakeholders with timely notice of the scheduled investor engagement. Such meetings are part of regular investor relations activities that help maintain ongoing dialogue between the company and its institutional stakeholders.